Women Better at Handling Credit
Women may earn less than men but they are better managers of credit.
According to a new report from Experian, women earn 23 percent less than men, but men have 4.3 percent more debt than women. Women also have a slightly higher average credit score of 675 compared to the men’s average of 674.
The study found that men use more of their available credit (31 percent) than women (30 percent).
The average man carried $26,227 in debt from credit cards, personal loans and auto loans compared to a $25,095 average for a woman.
Men are also taking out larger mortgages–an average of $187,245 for a man versus $178,140 for a woman. Men also have a higher incidence of late payments on their mortgages (5.7 percent) than women (5.3 percent).
“Seeing the divide between how men and women approach credit is interesting, but what’s most important is understanding the value of building a good credit history. How you manage credit and debt is critical to your financial well-being,” said Maxine Sweet, Experian vice president of public education. “Paying attention to what’s in your credit report, never missing a payment, and keeping your utilization rates low are three key steps to financial success.”
The study came from a nationwide sample of 750,000 credit reports.